How to Sell a Home Using an Auction

To sell a home using an auction, get the house in good selling condition, have a home inspection done, and decide what the minimum bid on the home will be. Set aside funds for marketing a home auction with advice from a mortgage specialist in this free video on real estate.

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Video Transcript

Hi my name is Stetson Lowe and this clip is about how to sell your home at an auction. The first step would be to get your home ready to sell free of any clutter and debris, do minor repairs, major repairs that need to be done, make sure it is in good quality condition to sell. You need to have a home inspector come in and do a home inspection and make any repairs you can. That would maximize the money that you will get out of it at an auction. The next step would be to decide if you want to have a floor price or a minimum bid on the home or if you are going to sell with an absolute price meaning sold to the highest bidder regardless of what the bid is. Once you have established this you need to set aside an amount of funds that you are going to pledge to marketing this auction. Typically a good amount of funds is 2 to 4% of what your seller's price or target sales price would be in marketing the auction. If you're not getting a good response to marketing for the auction you may want to prepare yourself that market conditions are such that you may not receive bids or you may get far less than what you are hoping for or asking for so keep that in mind. Bidders may be reacting to what is going on nationally in the economy and with economics exchanging daily. Bidders may be reacting to what's going on in the economy and may just show up to the auction trying to scoop it up for pennies on the dollar so keep that in mind.